Accelerated Benders’ Decomposition for Integrated Forward/Reverse Logistics Network Design under Uncertainty

Vahdat, Vahab; Vahdatzad, Mohammad Ali

doi:10.3390/logistics1020011

Cited by 6 publications

(4 citation statements)

References 70 publications

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“…The model minimizes the total expected costs. Vahdat and Vahdatzad [30] utilized two-stage stochastic programming to design a multi-period multistage integrated forward/reverse logistics network under uncertainty. They developed Benders' decomposition to solve the problem.…”

Section: Stochastic Reverse Logistics Network Designmentioning

confidence: 99%

“…A numerical example was used to analyze the performances of the risk-averse twostage stochastic programming models. 1 MILP Metaheuristics Min and Ko [16] 2 MINLP Metaheuristics Lee et al [18] 1 MILP Metaheuristics Lee et al [19] 1 MILP Metaheuristics Lee et al [20] 2 MINLP GAMS Ko and Evans [5] 2 MINLP Metaheuristics Ghafarimoghadam et al [21] 3 RO GAMS Ayvaz et al [22] 5 TSSP CPLEX Trochu et al [23] 5 TSSP -Yu and Solvang [24] 5 TSSP Lingo Kara and Onut [4] 5 TSSP GAMS Fonseca et al [25] 5 TSSP CPLEX Yu and Solvang [26] 5 TSSP Lingo Roudbari et al [27] 5 TSSP Metaheuristics Fattahi and Govindan [28] 5 TSSP Metaheuristics Pishvaee et al [29] 5 TSSP Lingo Vahdat and Vahdatzad [30] 5 TSSP Exact Algorithm Sugimura and Murakami [31] 1 MILP Linear Programming Kit Govindan and Gholizadeh [32] 4 SBRO Metaheuristics Ghomi-Avili et al [33] 5 TSSP GAMS Yavari and Zaker [34] 5 TSSP -Yavari and Zaker [35] 5 TSSP -Hatefi and Jolai [36] 4 SBRO GAMS Torabi et al [37] 4 SBRO GAMS…”

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confidence: 99%

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Reverse Logistics Network Design under Disruption Risk for Third-Party Logistics Providers

Chen

2022

Sustainability

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Reverse logistics is attracting attention due to the increasing concerns over environmental issues and the important economic impacts. The design of a reverse logistics network is a major strategic problem in the field of reverse logistics. As cost pressures in product returns continue to mount, a growing number of manufacturers have begun to outsource reverse logistics operations to third-party logistics (3PL) providers. On the other hand, considering disruption risks caused by natural or man-made factors in the reverse logistics network design is inevitable. This paper studies third-party reverse logistics network designs under uncertain disruptions. The problem is formulated as a risk-averse two-stage stochastic programming model with a mean risk objective. Two types of risk measures, value at risk (VaR) and conditional value at risk (CVaR), were examined, respectively. Finally, the sensitivity analysis of the model was carried out. The validity of the mean risk criteria is proved by comparison with risk-neutral approach. Moreover, the performance of the proposed model was examined by stochastic measures.

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Section: Stochastic Reverse Logistics Network Designmentioning

confidence: 99%

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confidence: 99%

Reverse Logistics Network Design under Disruption Risk for Third-Party Logistics Providers

Chen

2022

Sustainability

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“…They utilized over 800 papers between 1994 and 2017 and performed a detailed analysis of ECLO with an emphasis on fuzzy application [45]. Vahdat et al (2017) provided a two-stage stochastic programming modeling to design a multi-period, multistage, and single-commodity CLSC network under uncertainty [46]. Parakash et al (2018) proposed a CLSC network under risks and demand uncertainty [47].…”

Section: Literature Reviewmentioning

confidence: 99%

Designing a Sustainable Green Closed-Loop Supply Chain under Uncertainty and Various Capacity Levels

Tehrani

Gupta

2021

Logistics

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The ever-increasing concerns of the growth in the volume of waste tires and new strict government legislations to reduce the environmental impact of the end-of-life (EOL) tires have increased interest among companies to design a sustainable and efficient closed-loop supply-chain (CLSC) network. In the real world, the CLSC network design is subject to a variety of uncertainties, such as random and fuzzy (epistemic) uncertainties. Designing a reliable and environmentally cautious CLSC with consideration of risks and the uncertainty of the parameters in the network is necessary for a successful supply-chain network. This study proposes a sustainable and environmentally cautious closed-loop supply-chain network for the tire industry, by considering several recovery options, including retreading, recycling, and energy recovery. This study aims to design and develop a robust multi-objective, multi-product, multi-echelon, multi-cycle, multi-capacity, green closed-loop supply-chain network under hybrid uncertainty. There are two types of uncertainties associated with the parameters in the network. There is an uncertainty associated with the demand, which is expressed in some future scenarios according to the probability of their occurrences, as well as fuzzy-based uncertainty associated with return rates, retreading rates, recycling rates, procurement, and production costs, which are expressed with possibilistic distributions. In order to deal with this hybrid uncertainty, a robust fuzzy stochastic programming approach has been proposed, and the proposed mixed integer programming model is applied to a case study in the tire industry to validate the model. The result indicates the applicability of the proposed model and its efficiency to control the hybrid uncertainties and the risk level in the network.

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“…The value of parameters in scenarios could be generated using Eq. (4.73) and (4.74)(Vahdat and Vahdatzad, 2017):105…”

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confidence: 99%

Select issues in designing license contracts of strategic alliances in the pharmaceutical supply chain.

Mostofi¹

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Pharmaceutical products play an important role in the human life and improvement of patients. There are many types of medicine for which the supply chain networks have been spread around the world. This extensive application and communication in the logistic of pharmaceutical products entail efficient management and coordination of involved partners. Also, many organizations including private and public organizations as well as financial and insurance companies implement the functions of pharmaceutical services in health systems. Effective management of the partners’ relationships in a coordinated and integrated manner requires cooperative strategies. Furthermore, the evaluation of these strategies requires consideration of different aspects of cooperation, the participatory capabilities of partners, and necessary incentives facilitating their participation. In this thesis, the establishment of a strategic alliance, between producers of the new and patented pharmaceutical products by the cooperation of main producers or licensor of medicines by local manufacturers, distributors, pharmacies as well as local government are studied. In this regard, pricing of the patented medicines and valuing the license contract are taken into account by regarding different settings and assumptions surrounded the pharmaceutical supply chain. The problems under consideration can be specifically categorized as profit distribution problems in strategic alliances, especially when the alliance is formed with the participation of international partners. As described later, pricing decisions and mechanisms play a crucial role in identifying cooperative profits. Hence, after providing a deep analysis of the pricing mechanisms of the different pharmaceutical products, the cooperative game theory is utilized to address the profit split decisions of the partners under consideration. In doing so, it is attempted to distribute the profits fairly to partners and provide incentives for the participation of them to so-called coordinate them. The thesis is organized into four sections. The first section discusses a general license contract in the context of an international joint venture where the pricing mechanism of pharmaceutical products is similar to many other products and no special control by the regulatory bodies limits it. In this context, the medicinal raw materials and some medicinal compounds that are supplied in bulk could be mentioned. The results of this section provide managerial insights that could be extended to other special structures of pharmaceutical products and facilitate the extraction of solutions in more complex problems. The complex model of an alliance firm considering the financing issue, the demand and market uncertainty, the competitive pricing mechanism in an oligopoly market, the tax and depreciation issues as well as the possibility of the alliance liquidation is studied in the second section. Also, based on the results of the general model of the license contract in the first section, an innovative algorithm based on dynamic programming is proposed to extract the solution of this multi-period stochastic model. In the third section, the patented medicines are investigated through the establishment of a local manufacturer under a license contract from the main manufacturer. For the patented medicines, also known as branded medicines, the reference-based pricing mechanism is explored. The mechanism is nowadays the most applicable mechanism in many countries as well as the country under study. However, to account for the capabilities of the partners in the cooperative alliance consisting of the main local and main manufacturers as well as the government who affords most of the pharmaceutical-related cost of the patients through franchises themes, the cooperative game theory approach is used to modify the price of medicines produced now domestically. We regard this approach as an innovative pharmaceutical pricing agreement that plays the role of coordinator of partners by ensuring proper distribution of cooperative surplus to them. The final section focuses on the deterioration of pharmaceutical products and the effects that a cooperative alliance similar to the one introduced in the third section has on the reduction of this phenomenon. Indeed, we introduce the domestic production of patented medicines as an efficient strategy that could significantly reduce the deterioration of medicines as one of the most worrying challenges of the pharmaceutical supply chain. For all models discussed in the sections of the thesis, first, the surrounded assumptions of the problem are clarified deeply, and after developing the mathematical models of the problems, the ways for obtaining optimal solutions are explained in detail. Also, the results of the proposed models are compared with the evidence in real-world problems for validation purposes. The thesis ends with managerial insights, conclusions, and future works opportunities in the final section.

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Accelerated Benders’ Decomposition for Integrated Forward/Reverse Logistics Network Design under Uncertainty

Cited by 6 publications

References 70 publications

Reverse Logistics Network Design under Disruption Risk for Third-Party Logistics Providers

Reverse Logistics Network Design under Disruption Risk for Third-Party Logistics Providers

Designing a Sustainable Green Closed-Loop Supply Chain under Uncertainty and Various Capacity Levels

Select issues in designing license contracts of strategic alliances in the pharmaceutical supply chain.

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